Senate Set to Vote on CLARITY Act Amid Ongoing Disputes
The US Senate is set to vote on the CLARITY Act, a bill aimed at regulating digital assets and clarifying market structure. The Treasury Secretary has been actively promoting the bill, which is seen as a key piece of legislation for the crypto industry. However, experts caution that passing the bill will be no easy task.
The Senate vote on Tuesday is not directly about the bill itself but rather whether to begin debating it. A cloture vote requires 60 votes to pass and if it succeeds, the Senate will enter debate with an amendment process ahead of it. If it fails, the leadership must decide whether to try again or restructure the bill.
The CLARITY Act has been a contentious issue, with the ethics provision being a major point of contention between Republicans and Democrats. The disagreement over restricting federal officials from issuing or sponsoring digital assets has stalled negotiations. Additionally, opposition to the bill has broadened beyond the ethics fight, with New York's attorney general coming out against it on preemption grounds.
Despite these challenges, some experts believe that the industry is making progress in pushing for the bill's passage. The Sheriffs' Association dropped its opposition after negotiating amendments to the bill's illicit finance provisions and the White House has engaged directly with senators on the issue. However, the odds of passing the bill remain low.